Valero Energy Corporation (VLO)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	12,046,000	14,632,000	14,819,000	18,309,000	15,518,000	12,580,000	9,489,000	3,793,000	1,788,000	-37,000	-1,375,000	-122,000	-1,761,000	239,000	1,782,000	932,000	3,578,000	3,344,000	3,702,000	4,036,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	26,346,000	25,975,000	25,851,000	24,977,000	23,561,000	21,912,000	20,969,000	18,821,000	18,430,000	17,476,000	17,651,000	17,801,000	18,801,000	19,223,000	19,847,000	18,842,000	21,803,000	21,107,000	21,345,000	21,309,000
Return on total capital		45.72%	56.33%	57.32%	73.30%	65.86%	57.41%	45.25%	20.15%	9.70%	-0.21%	-7.79%	-0.69%	-9.37%	1.24%	8.98%	4.95%	16.41%	15.84%	17.34%	18.94%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $12,046,000K ÷ ($—K + $26,346,000K)
= 45.72%

Valero Energy Corp.'s return on total capital has displayed variability over the past eight quarters. The company's return on total capital ranged from a low of 13.07% in Q1 2022 to a high of 50.57% in Q1 2023. The trend in return on total capital shows an increasing pattern from Q1 2022 to Q1 2023, indicating improved efficiency in generating profits relative to its total capital employed. The highest returns were achieved in the recent quarters, demonstrating the company's ability to effectively utilize its capital resources to generate earnings. Overall, the company's return on total capital performance reflects a positive trend and suggests efficient capital deployment by Valero Energy Corp.